Energy Sector

State-run oil companies rally on fuel price hike

The state-run companies which are led by BPCL have gathered in morning trade on the BSE today. This was after the government’s announcement of a hike in fuel prices to ease pressure on their margins.

There was a rise in shares of Bharat Petroleum Corporation Ltd (BPCL) by 8.29 per cent. It was very close to touch a month's high of Rs 687 on the BSE, while Hindustan Petroleum Corp Ltd (HPCL) has also jumped 6.12 per cent to touch a one-month high of Rs 416.55.

There was positive interest in the Indian Oil Corp with the rise up by 6.79 per cent to a one month high of Rs 360.

Ministers' panel may meet in July on fuel pricing

Ministers' panel may meet in July on fuel pricingA top official from oil ministry said on Thursday that the much awaited meeting will be held next month comprising panel of ministers to look at raising prices of subsidized fuels.

Earlier in June, petrol prices were fixed by state-run oil firms but government keep control over the prices of diesel, kerosene and cooking gas to tame the inflexibility in inflation and to save poor.

Saudis raise oil production to curb prices

Saudis raise oil production to curb pricesAccording to the Angolan oil minister, some members of OPEC will resist the demand of increase by Saudi Arabia in OPEC’s oil output because members want to review the production levels.

Members like Ecuador, Venezuela and Angola said that oil supplied in oil markets is good enough and they found no reason to increase the production.

BP-Reliance partnership will source and market natural gas across India

BP-Reliance partnership will source and market natural gas across IndiaThree months back, in February, Reliance had decided to enter into a deal with BP in which Reliance agreed to sell its stake in 23 of its oil and natural gas blocks, including some in the KG basin to BO for USD 7.2 billion. It is expected that Reliance would be benefited from BP's deepwater exploration expertise.

Jairam defends Jaitapur project clearance

Union minister, Jairam Ramesh has said that it would be a romantic illusion to believe that biogas can meet all of the country’s energy requirements. He said that nuclear energy, thermal energy and fuel power projects are essential in order to meet the country’s demand for energy in the commercial sector at least. This was said by the minister, as an indirect reply to United Nations Environment Programme (UNEP) Executive Director Achim Steiner.

Vedanta raises $1.65 bn to finance Cairn buy

Vedanta raises $1.65 bn to finance Cairn buyVedanta Resources promoted by Anil Agarwal announced on Friday that it will raise $1.65 billion (R 7,425 crore), through offering bonds for the acquisition of 40% stake in Cairn India. This bond issue will become one of the largest corporate bond issuances by an Indian group.

EGoM meet on June 9 to consider fuel prices

EGoM meet on June 9 to consider fuel pricesUPA government has adopted wait and watch policy for increasing the prices of controlled petroleum products like diesel, cooking gas and kerosene seeing the downward global trend in oil prices.

The Empowered Group of Ministers (EGoM) is authorized to decide the increases and has scheduled June 9 to consider the hike in the prices of diesel, kerosene and domestic LPG. Although sources said that there is no official confirmation on the fixation of date.

Tax collections would be affected by changes in duty structure for crude and fuel

This fiscal year 2011-12, government may miss its tax collection target due to moderate economic growth and change in the duty structure for crude and fuel, said by revenue secretary Sunil Mitra on Tuesday.

In a meeting held between income tax top officials Mitra told that this is not the correct time to cut duty on petroleum products because it would greatly affect the tax collection regime.

Coal India, not ONGC, is now country's most valued PSU

Coal India, not ONGC, is now country's most valued PSUCoal India acquires the market capitalization of Rs 2.5 lakh crore and become the country's most valued public sector company. With this position it has surpassed oil and gas major ONGC.

After Reliance Industries which has the market capitalization of Rs 3.01 lakh crore Coal India Ltd (CIL) become the second most valuable company of India.

CIL had broken the ONGC limit of Rs 2.37 lakh.

Fuel price shock

Fuel price shockIn April the inflation in the commodities were at ease but the sudden rise in the in petrol prices and an expected increase in diesel rates has shocked everyone. The increased rates have made fears of acceleration in price line in the future.

On Monday the data was released and the country's most-watched stock index declined over 1% and yield on the benchmark 7.8% 2021 government bond raised one basis point.